Nizhnekamskneftekhim PJSC -- Moody's withdraws all ratings of Nizhnekamskneftekhim PJSC following acquisition by Sibur

Rating Action: Moody's withdraws all ratings of Nizhnekamskneftekhim PJSC following acquisition by SiburGlobal Credit Research - 07 Feb 2022London, 07 February 2022 -- Moody's Investors Service ("Moody's") has withdrawn all ratings of Nizhnekamskneftekhim PJSC (NKNK), due to corporate reorganisation following the acquisition by Sibur Holding, PJSC (Sibur, Baa3 stable), a vertically integrated petrochemical company operating in Russia. The outlook at the time of the withdrawal was stable. The company has no rated debt.The action follows completion of acquisition by Sibur of certain assets of JSC TAIF, including NKNK. As a result of this transaction Sibur, via JSC TAIF, now holds 83% NKNK's ordinary shares (or 78,1% of the company's total equity).A full list of affected ratings can be found at the end of this press release.RATINGS RATIONALEThe acquisition, completed in October 2021, has resulted in corporate reorganization with NKNK becoming an integral part of Sibur group financially and operationally. Key investment and financing decisions, including debt issuance, will be taken at the holding level. Moody's upgraded NKNK to Ba3 stable and affirmed Sibur at Baa3 stable on 29 October 2021 to reflect consolidation of NKNK into Sibur from the fourth quarter of 2021. Please see press-release [1].Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.LIST OF AFFECTED RATINGSWithdrawals:..Issuer: Nizhnekamskneftekhim PJSC....Probability of Default Rating, Withdrawn, previously rated Ba3-PD....LT Corporate Family Rating, Withdrawn, previously rated Ba3Outlook Actions:..Issuer: Nizhnekamskneftekhim PJSC....Outlook, Changed To Ratings Withdrawn From StableNizhnekamskneftekhim PJSC is a major Russian petrochemical company located in the Republic of Tatarstan. NKNK's eight core production units produce rubber, plastics, monomers and other petrochemicals, and are located on two adjacent production sites that have centralised transportation, energy and telecommunication infrastructure. In the 12 months that ended on 30 June 2021, the company reported sales of RUB205 billion and adjusted EBITDA of RUB49 billion. Of NKNK's ordinary shares, 83% (or 73% of the company's total equity) are held by Sibur via JSC TAIF, and the rest of the equity is in free float. The Tatarstan government retains the golden share of NKNK, which gives the government veto power over certain major corporate decisions.Sibur Holding, PJSC (Sibur) is a vertically integrated petrochemical company operating in Russia. Leonid Mikhelson is the major shareholder with of shares (30.6%), followed by Gennady Timchenko with 14.5%. China Petroleum and Chemical Corporation (A1 stable) and China's (Government of China, A1 stable) Silk Road Fund hold 8.5% each in Sibur. SOGAZ JSC holds 10.6%, JSC TAIF shareholders 15%, and the company's current and former management hold the remaining 12.3%. In the 12 months ended 30 September 2021, Sibur generated revenue and reported EBITDA of RUB752 billion and RUB334 billion, respectively.REGULATORY DISCLOSURESFor any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.REFERENCES/CITATIONS[1] Moody's affirms the Baa3 ratings of Sibur and upgrades NKNK to Ba3 following completion of merger transaction with JSC TAIF; outlook stable (Link: https://www.moodys.com/research/--PR_457115)Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Julia Pribytkova Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service Limited, Russian Branch 7th floor, Four Winds Plaza 21 1st Tverskaya-Yamskaya St. Moscow 125047 Russia JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Victoria Maisuradze Associate Managing Director Corporate Finance Group JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Releasing Office: Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). 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